Litigation Under the Fair Credit Reporting Act: Failure to Investigate Claims, Compliance Pitfalls, and Defense Strategies

This session provides an overview of the Fair Credit Reporting Act and the entities it regulates, including consumer reporting agencies, users of consumer reports, and furnishers of information. Participants will learn about the distinctions between nationwide CRAs, regional CRAs, and resellers, along with their respective reinvestigation obligations.

This session explores who qualifies as a furnisher under FCRA and when investigation duties are triggered by CRA notifications or direct consumer disputes. Attendees will examine the scope of direct dispute requirements, exceptions to investigation obligations, and the historical evolution of furnisher liability including the private right of action under Section 1681s-2(b).

Drawing from seminal cases like Johnson v. MBNA and Saunders v. BB&T, this session examines what constitutes a reasonable reinvestigation by furnishers. Participants will learn that pro forma data conformity reviews are insufficient and that furnishers must conduct substantive, qualitative inquiries including reviewing underlying documents and properly reporting disputed account status.

A brief intermission allowing attendees to refresh before continuing with the remaining program sessions. Use this time to review notes and prepare questions for upcoming discussions.

This session analyzes how CRA communications affect furnisher obligations, using cases like Chang v. Verizon to illustrate when insufficient CRA disclosures may shield furnishers from liability. Participants will explore the legal versus factual accuracy distinction and the emerging objectively verifiable standard across different circuits.

This session identifies frequent compliance failures including data conformity reviews, ignoring consumer-provided information, and inconsistent reporting across CRAs. Attendees will learn mitigation strategies such as implementing robust policies and procedures, monitoring regulatory developments, training staff on qualitative review requirements, and conducting regular audits.

The final session covers practical defense approaches including proper pleading analysis, documentation requirements, and the critical role of internal policies in establishing reasonableness. Participants will examine how direct disputes factor into willfulness determinations and learn best practices for investigating disputes even before formal CRA notification.